Guan Eng: From just RM450m, govt coffers under Pakatan jumped sevenfold in four months

Ida Lim
Finance Minister Lim Guan Eng said Pakatan Harapan has managed to boost government funds by seven times in four months. — Picture by Hari Anggara

KUALA LUMPUR, Oct 20 — Pakatan Harapan has managed to boost government funds by seven times in four months after taking over from the previous administration that had just RM450 million of ready funds for spending, Finance Minister Lim Guan Eng said today.

In continued adherence to the “full disclosure” principle under the PH government, Lim explained how it managed to pay the monthly RM8 billion bill of wages and pension despite being left with a mere RM450 million in its Consolidated Revenue Account.

Lim ultimately chalked it down to the PH government’s “sound and prudent financial management practices”, which he said was reflected in the figures in the four months it took over.

He noted that the PH federal administration saw its four-month revenue during the May-August period growing to RM73.58 billion as compared to the slightly lower RM71.88 billion during the January-April period, while at the same time substantially reducing its operational expenditure by RM12.96 billion from the previous four-month period’s RM83.29 billion to RM70.33 billion.

“This current account balance surplus of RM3.25 billion has helped the Federal Government to record an increased Consolidated Revenue Account balance of RM3.70 billion as of 31 August 2018.

“The seven-fold increase in the Consolidated Revenue Account by RM3.25 billion in only four months, from RM450 million in the Consolidated Revenue Account on 30 April 2018 to RM3.70 billion on 31 August 2018, is a testament to the good financial management of the Pakatan Harapan government,” he said in a statement today.

This seven-fold jump was “how the Pakatan Harapan government managed to secure sufficient funds to run the administration of the Federal Government including paying the monthly RM8 billion salaries and pensions,” Lim said.

Lim today again reiterated the drastic wiping out of 96 per cent of the then Barisan Nasional-led government’s funds in the run-up to the 14th general election, noting that the Consolidated Revenue Account’s funds plunged from RM11.41 billion on December 31, 2017 to RM450 million on April 30, 2018.

“Due to the alarming fiscal position of the Federal Government when Pakatan Harapan first took over the administration on May 9, 2018, we were left with no choice but to implement stringent measures to control the operating expenditure and practise prudent spending.

“Furthermore, Pakatan Harapan’s clean administration of Competency, Accountability and Transparency (CAT) has allowed not only savings from eliminating corrupt practices but also efficiency gains from institutional reforms such as open competitive tenders,” he said.

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